Analysts largely agreed that this was just the beginning of the pound's fall.
"The market was not prepared for this Brexit vote. The way it traded the last couple weeks up through Thursday or early Friday, was that the vote would be for remain and risk assets were quite strong," Patrick Bennett, foreign exchange strategist at Canada-based bank CIBC, told CNBC's "Squawk Box."
He predicted two rounds of moves in the pound: first to unwind the remain optimism and then to price in the long-term effects of a Brexit. He forecast the pound could fall as low as $1.15 in the next couple months.
Safe-haven flows spurred the U.S. dollar higher, with the dollar index, which measures the greenback against a basket of currencies, surging as high as 96.268 overnight, from levels under 94 before the referendum's results.
The dollar's gains weighed on China's currency.
The People's Bank of China (PBOC) set the midpoint of its trading band for the yuan against the dollar at 6.6375, a five-and-a-half year low for the yuan, compared with Friday's 6.5776, suggesting authorities wanted the mainland's currency to weaken. The PBOC allows the yuan spot rate to rise or fall a maximum of 2 percent from the midpoint in daily trade.
Early on Monday, the U.S. dollar fetched 6.644 yuan in the onshore spot market, compared with as much as 6.5675 yuan on Thursday, before the referendum's results.
Although the Chinese currency was pegged to a trade-weighted basket of currencies last year, traders continued to place more focus on the dollar-yuan exchange rate.
Nomura said in a note Friday that it expected the Brexit will spur depreciation in the yuan against the U.S. dollar.
"The increased uncertainty triggered by the Brexit will arouse investors' risk-aversion sentiment and lead to capital outflows from China and other emerging economies," it said.
Additionally, "as the decision will drag euro and pound lower, the renminbi may need to depreciate against U.S. dollar if policymakers decide they do not want to see too much appreciation of renminbi against the trade-weighted basket," it said, but it added that it didn't expect an aggressive devaluation in the Chinese currency.
Some expected the PBOC will continue to step in this week.
Li Daokui, a professor of economics at Tsinghua University and a former PBOC advisor, told CNBC's "Squawk Box" that the central bank is balancing two goals: One is to let the exchange rate float with the market without over-intervening and the other is to stabilize the exchange rate and market expectations.
"I think the second consideration, which is to provide stability to the world exchange rate market, will play a more important role in the coming trading session, through the end of this week," Li said.